Mesa Air Group Chapter 11 Info
01-07-2010, 03:06 PM
#31
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winglet
Last edited by winglet; 01-07-2010 at 03:18 PM.
01-07-2010, 03:23 PM
#32
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01-07-2010, 03:24 PM
#33
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01-07-2010, 03:29 PM
#34
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No, Mesa/Freedom only operates ERJs for Delta which Mesa/Freedom owns or leases. Delta owned all the -900s that Mesa/Freedom operated so it didn't hurt Mesa as much when that flying was pulled. I'm guessing that's why Mesa is fighting tooth and nail for the ERJ flying and barely blinked at losing the -900 flying (still in court, just not as noisy about it).
Nevets,
You can follow the story through Mesa's press releases. Mesa flew Delta's CRJ-900's for a time. Delta financed the airframes and MAG pilots flew them from November 2007 until August 2008. Delta wanted to terminate the ERJ flying as well but lost the injunction. Mesa now only flies ERJ's as Delta Connection out of CVG.
winglet
You can follow the story through Mesa's press releases. Mesa flew Delta's CRJ-900's for a time. Delta financed the airframes and MAG pilots flew them from November 2007 until August 2008. Delta wanted to terminate the ERJ flying as well but lost the injunction. Mesa now only flies ERJ's as Delta Connection out of CVG.
winglet
01-07-2010, 03:34 PM
#36
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One reliable source stated that Mesa entered bankruptcy specifically to force the dispute with Delta to a resolution, which evidently Mesa believes will be favorable to them. This seems odd to me, but then I don't have a law degree nor do I know the particulars of Mesa's contract with Delta.
One possible outcome is for a much smaller Mesa flying as go! and with USAir with only CRJs, and the Delta settlement money providing the exit financing.
One possible outcome is for a much smaller Mesa flying as go! and with USAir with only CRJs, and the Delta settlement money providing the exit financing.
1. Anything mesa claims is probably an outright fabrication.
2. DL is neither stupid, rash, nor egotistical...they would not pick expensive fights which they are going to lose.
3. DL holds all the cards...they have money for lawyers and regardless of what mag, mag's creditors, and the BK court want DL cannot be forced into a settlement unless they want to.
Since they were going to lose the DL flying soon anyway, Mesa might be hoping to:
a) Squeeze some cash out of DL and then
b) Dump the ERJ's back to their lien-holder/lessor
That way they can secure some cash for future DL flying without having to actually do the flying or pay any associated overhead. Free money...of course I think OJ is overly optimistic about his chances and the amount of settlement.
01-07-2010, 03:36 PM
#37
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Actually it was up on Monday...
01-07-2010, 08:09 PM
#39
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The odd thing in all this is, where did mesa come up with money to fund their own trip through BK? For an airline who had reported less cash on hand than monthly payroll expenses, Mesa was literally on life-support. If the payments from the mother carriers didn't arrive on-time Mesa would be struggling to make payroll. Yet, now all of a sudden Mesa can fund its own trip to BK. It just doesn't make sense. Mesa has to have received funds from somewhere.
It would be peanuts for Delta to fund Mesa while trying to restructure. This would give Mesa a known chance to dump the ERJ leases in BK, allowing Delta to end this drawn out saga once and for all. For pocket change to Delta they could force Mesa to drop the lawsuits and leave by helping them have the legal opportunity to do so with a Chapter 11 restructuring.
I am by no means saying this is the case. I am just trying to figure out where Mesa's resources are coming from. It would certainly be a win-win solution for both sides to his ugly issue.
Just my two cents of pondering
It would be peanuts for Delta to fund Mesa while trying to restructure. This would give Mesa a known chance to dump the ERJ leases in BK, allowing Delta to end this drawn out saga once and for all. For pocket change to Delta they could force Mesa to drop the lawsuits and leave by helping them have the legal opportunity to do so with a Chapter 11 restructuring.
I am by no means saying this is the case. I am just trying to figure out where Mesa's resources are coming from. It would certainly be a win-win solution for both sides to his ugly issue.
Just my two cents of pondering
01-07-2010, 08:14 PM
#40
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The odd thing in all this is, where did mesa come up with money to fund their own trip through BK? For an airline who had reported less cash on hand than monthly payroll expenses, Mesa was literally on life-support. If the payments from the mother carriers didn't arrive on-time Mesa would be struggling to make payroll. Yet, now all of a sudden Mesa can fund its own trip to BK. It just doesn't make sense. Mesa has to have received funds from somewhere.
It would be peanuts for Delta to fund Mesa while trying to restructure. This would give Mesa a known chance to dump the ERJ leases in BK, allowing Delta to end this drawn out saga once and for all. For pocket change to Delta they could force Mesa to drop the lawsuits and leave by helping them have the legal opportunity to do so with a Chapter 11 restructuring.
I am by no means saying this is the case. I am just trying to figure out where Mesa's resources are coming from. It would certainly be a win-win solution for both sides to his ugly issue.
Just my two cents of pondering
It would be peanuts for Delta to fund Mesa while trying to restructure. This would give Mesa a known chance to dump the ERJ leases in BK, allowing Delta to end this drawn out saga once and for all. For pocket change to Delta they could force Mesa to drop the lawsuits and leave by helping them have the legal opportunity to do so with a Chapter 11 restructuring.
I am by no means saying this is the case. I am just trying to figure out where Mesa's resources are coming from. It would certainly be a win-win solution for both sides to his ugly issue.
Just my two cents of pondering
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